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Three levels of PPC for hotels

Jun

2011

Pay-per-click campaigns such as Google Adwords, Bing Ads and others have been a very lucrative advertising system for hotels. At WIHP we run campaigns for hundreds of independent hotels which gives us a unique insight and allows us to see what makes works and what doesn’t.

What is often not understood is what are the priorities of a PPC campaign for hotels. While hotels often desire to buy keywords such as Hotel in Rome, Hotel in NYC or other such broad keywords, it is an expensive way of spending the budget and does not always have a good return on investment.

There are in essence three levels of hotel PPC campaigns.

Le Brandjacking et les trois niveaux de campagnes de CPC (Hôtel, Brandjacking, Recherche d’Hôtel, Renseignements de Voyage)

Le Brandjacking et les trois niveaux de campagnes de CPC (Hôtel, Brandjacking, Recherche d’Hôtel, Renseignements de Voyage)

The first is what we call the Security campaign. Here we’re focusing on capturing all the traffic on the hotel’s brand name, as was recently pointed out by MarkMonitor, on average 55% of a hotel’s business is being brandjacked by competitors and more importantly by OTAs. The first priority for a hotel is to do their PPC campaign on their brand name and the budget needed for that is often under-estimated.

The next level is what we call Qualified campaign . Here a hotel is reaching out to travelers that are already searching for a hotel in the hotel’s area. The traveler is a qualified traveler since he already intends to stay in that city and is now looking for where to stay.

The third level is what we call Branding campaign. This is the most expensive campaign and also has the lowest short term ROI since you are reaching out to potential travelers and talking about your brand to inform them that your hotel exists. If you have impressive visuals and a brand that can be remembered, this campaign is also your best long-term investment.

In every case, our PPC department evaluates how much is needed for the hotel in each category and builds campaigns with our clients that will bring the most revenue back to the hotel.

What is important to understand is that going to broad keywords that are going to cost a fortune per click may be “cool” but it isn’t the best guarantee for immediate revenue. By helping our clients build their PPC strategy for maximum revenue we help them reach bit by bit to each campaign level.

3 Comments

  1. Wihp Team

    Stimulus in Hotel Marketing part 1 of 4 | WIHP Magazine
    [...] of advertising since one it is the broadest target zone. We published an article that covers the three levels of pay-per-click advertising for hotels that describes this in more [...]

  2. Raluca

    hello why your rss feed doesn’t work, i’d like to have it.. thks.

  3. Tony Loeb

    Hi Raluca,
    The RSS works here: http://www.wihphotels.com/mag/feed/rss/ but you are right, there is no easy button to find it. Thanks for the note, we’ll update the blog as soon as possible

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Aldo Polledro

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